HINT Newsletter

Banks Likely to Deepen Rather Than Ease Recession in 2009

Hungary's banking system will likely add to the problems of Hungary's economy in 2009, rather than present a solution for the expected recession, Hungarian Bank Association chairman Peter Felcsuti said at a conference on November 20th 2008.

Hungary's banking system is 80 pct-owned by foreign strategic investors, and these foreign banks are the reason for the system's liquidity in the past one and a half or two months. But the parent banks are unlikely to provide additional financing to their Hungarian units as they themselves are also suffering a liquidity squeeze, Mr Felcsuti said.